Remitly Global, Inc.

Notes to Condensed Consolidated Financial Statements

1. Organization and Description of Business

Description of Business

Remitly Global, Inc. (the “Company” or “Remitly”) was incorporated in the State of Delaware in October 2018 and is headquartered in Seattle, Washington, with various other global office locations. Remitly was founded and incorporated in the State of Delaware in 2011 under the name of Remitly, Inc., which is now a wholly-owned subsidiary of Remitly Global, Inc.

Remitly is a trusted provider of financial services that transcend borders. With a footprint spanning more than 175 countries, Remitly has built one of the world’s leading global money movement platforms, trusted by millions of customers. Remitly continues to evolve beyond a remittance company into a diversified, cross-border financial services provider, serving both consumers and businesses across a growing set of use cases.

Unless otherwise expressly stated or the context otherwise requires, the terms “Remitly” and the “Company” within these notes to the condensed consolidated financial statements refer to Remitly Global, Inc. and its wholly-owned subsidiaries.

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The year-end data within the Condensed Consolidated Balance Sheets was derived from audited financial statements, but does not include all disclosures required by GAAP and therefore the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the historical audited annual consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s consolidated financial position, results of operations, comprehensive income, and cash flows for the interim periods. The interim results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026, or for any other future annual or interim period.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Reclassification

The condensed consolidated financial statements and notes have been prepared consistently, with the exception of the reclassification of certain prior year amounts within the Company’s Condensed Consolidated Statements of Cash Flows. Reclassifications include a change in presentation of certain cash activity related to customer funds assets and liabilities, which is comprised of disbursement prefunding, customer funds receivable, customer liabilities, and trade settlement liability included within the line item ‘Accrued expenses and other current liabilities’ on the Condensed Consolidated Balance Sheets. Certain components of this activity were reclassified from cash flows from operating activities to cash flows from financing activities, reflected within the line item ‘Net change in customer funds assets and liabilities’ on the Condensed Consolidated Statements of Cash Flows. This change resulted in an increase in cash flows from operating activities of $49.7 million for the nine months ended September 30, 2025, offset by a corresponding change in cash flows from financing activities. The Company has conformed the prior period Condensed Consolidated Statements of Cash Flows to the current period presentation to enhance transparency and provide comparability. These reclassifications did not affect the Company’s Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Balance Sheets, or Condensed Consolidated Statements of Stockholders’ Equity.

Use of Estimates

The preparation of the accompanying condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported and disclosed within the condensed consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition including the treatment of sales incentive programs, reserves for transaction losses, allowance for credit losses, stock-based compensation expense, the carrying value of operating lease right-of-use assets and operating lease liabilities, the realizability of deferred tax assets, capitalization of software development costs, goodwill, and intangible assets. The key assumptions applied for the value of the intangible assets include revenue growth rates for a hypothetical market participant, selected discount rates, as well as migration curves for developed technology. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Actual results could differ from these estimates and assumptions, and these differences could be material to the condensed consolidated financial statements.

Concentration of Credit Risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash and cash equivalents and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts that are held by its disbursement partners, which are typically located in India, Mexico, and the Philippines. The Company has not experienced any significant losses on its deposits of cash and cash equivalents, disbursement prefunding, restricted cash, or customer funds receivable in the three and nine months ended September 30, 2026 and 2025.

For the three and nine months ended September 30, 2026 and 2025, no individual customer represented 10% or more of total revenues or customer funds receivable.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are discussed in Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to these policies during the nine months ended September 30, 2026.

Advertising

Advertising expenses are charged to operations as incurred and are included as a component of ‘Marketing expenses’ within the Condensed Consolidated Statements of Operations. Advertising expenses are used primarily to attract new customers. Advertising expenses totaled $86.8 million and $69.5 million during the three months ended September 30, 2026 and 2025, respectively. Advertising expenses totaled $239.5 million and $187.6 million during the nine months ended September 30, 2026 and 2025, respectively.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

None.

Accounting Pronouncements Not Yet Adopted

There have been no changes to the Company’s new accounting pronouncements not yet adopted as discussed in Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

There are other new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) that the Company has adopted or will adopt, as applicable. The Company does not believe any of these accounting pronouncements have had, or will have, a material impact on the condensed consolidated financial statements or disclosures.

3. Revenue

The Company’s primary source of revenue is generated from its global money movement product. Revenue is earned from transaction fees charged to customers and the foreign exchange spreads earned between the foreign exchange rate offered to customers and the foreign exchange rate on the Company’s currency purchases. Revenue is recognized, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided, when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which includes the following steps:

(1)identification of the contract with a customer;

(2)identification of the performance obligations in the contract;

(3)determination of the transaction price;

(4)allocation of the transaction price to the performance obligations in the contract; and

(5)recognition of revenue when, or as, the Company satisfies a performance obligation.

For the Company’s global money movement product, customers engage the Company to perform one integrated service—collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions.

Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, the disbursement method chosen by the customer, and the country to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided.

The Company’s global money movement product comprises of a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contain a significant financing component.

The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments for its customers. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as ‘Transaction expenses’ within the Condensed Consolidated Statements of Operations. The Company does not have any capitalized contract acquisition costs.

Sales Incentives

The Company provides sales incentives to customers in a variety of forms, including promotions, discounts, and other sales incentives. Evaluating whether a sales incentive is a payment to a customer requires judgment. Sales incentives determined to be consideration payable to a customer or paid on behalf of a customer are accounted for as reductions to revenue, up to the point where net historical cumulative revenue, at the customer level, is reduced to zero. Those additional incentive costs that would have caused the customer level revenue to be negative are classified as advertising expenses and are included as a component of ‘Marketing expenses’ within the Condensed Consolidated Statements of Operations. In addition, referral credits given to a referrer are classified as ‘Marketing expenses,’ as these incentives are paid in exchange for a distinct service.

The following table presents the Company’s sales incentives for the three and nine months ended September 30, 2026 and 2025:

(1)Sales incentives that are charged to‘Marketing expenses’ are included in advertising expenses as disclosed in Note 2. Basis of Presentation and Summary of Significant Accounting Policies.

Revenue by Geography

The following table presents the Company’s revenue disaggregated by primary geographical location for the three and nine months ended September 30, 2026 and 2025, attributed to the country in which the sending customer is located:

4. Consumer Receivables

Consumer receivables represent outstanding amounts advanced to customers for cross-border payments processed through Remitly Flex. These receivables are interest free and are generally due in full within 30 days of the transaction in order to retain eligibility for future advances, or up to 90 days if customers enroll in a monthly subscription fee program.

The following table presents an aging analysis of the amortized cost of consumer receivables by delinquency status as of September 30, 2026 and December 31, 2025:

Consumer receivables are charged off when they are over 120 days past due and the Company has no reasonable expectation of recovery. When consumer receivables are charged off, the Company reduces the related allowance for credit losses. While the Company expects collections at that point to be unlikely, the Company may recover amounts from the respective consumers. Any subsequent recoveries following charge-off are credited to ‘General and administrative expenses’ on the Condensed Consolidated Statements of Operations in the period they were recovered.

The allowance for credit losses, charge-offs, and recoveries related to consumer receivables, as well as for other components of customer funds assets, were each not material for the three and nine months ended September 30, 2026 and 2025.

5. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of September 30, 2026 and December 31, 2025:

6. Property and Equipment

Property and equipment, net consisted of the following as of September 30, 2026 and December 31, 2025:

Depreciation and amortization expense related to property and equipment was $6.2 million and $4.3 million for the three months ended September 30, 2026 and 2025, respectively. Depreciation and amortization expense related to property and equipment was $17.6 million and $11.9 million for the nine months ended September 30, 2026 and 2025, respectively.

Capitalized Internal-Use Software Costs

The following table presents the Company’s capitalized internal-use software, including amortization expense recognized, for the three and nine months ended September 30, 2026 and 2025:

(1)Amounts are inclusive of stock-based compensation costs capitalized to internal-use software as denoted within the table.

(2)Amounts are included within ‘Depreciation and amortization’ on the Condensed Consolidated Statements of Operations.

Geographical Information

The following table presents the Company’s long-lived assets based on geography, which consist of Property and equipment, net and Operating lease right-of-use assets as of September 30, 2026 and December 31, 2025:

7. Intangible Assets

The components of identifiable intangible assets as of September 30, 2026 and December 31, 2025 were as follows:

The acquired identified intangible assets have estimated useful lives ranging from three tofour years. Amortization expense for intangible assets was $0.5 million and $2.1 million for the three months ended September 30, 2026 and 2025, respectively. Amortization expense for intangible assets was $1.6 million and $6.3 million for the nine months ended September 30, 2026 and 2025, respectively.

Expected future intangible asset amortization as of September 30, 2026 was as follows:

8. Fair Value Measurements

As of September 30, 2026, the Company held $9.8 million of money market funds presented within‘Cash and cash equivalents’ on the Condensed Consolidated Balance Sheets. They are classified as Level 1 in the fair value hierarchy as the Company values these amounts using quoted market prices.

The Company’s derivative instruments are classified as Level 2 because it uses quoted forward spot rates at the end of the applicable periods, which are corroborated by market-based pricing. As of September 30, 2026 and December 31, 2025, the notional value of the Company’s outstanding foreign exchange contracts classified as derivative instruments was $238.8 million and $25.0 million, respectively. The fair values of the related derivative assets and liabilities were not material. No material gains or losses on derivative instruments were recorded during the three and nine months ended September 30, 2026 and 2025. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, for additional information. There were no other financial assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2026 and December 31, 2025.

The carrying values of certain financial instruments, including cash equivalents, disbursement prefunding, customer funds receivable including consumer receivables, accounts payable, accrued expenses and other current liabilities, customer liabilities, short-term debt, and long-term debt, approximate their respective fair values due to their short-term nature. If consumer receivables were measured at fair value in the financial statements, they would be classified as Level 3. All other financial instruments would be classified as Level 2.

9. Debt

Secured Revolving Credit Facility

2025 Revolving Credit Facility

In June 2025, Remitly Global, Inc. and Remitly, Inc., a wholly-owned subsidiary of Remitly Global, Inc., as co-borrowers (together, the “Co-Borrowers”), entered into a credit agreement (as amended, the “2025 Revolving Credit Facility”) with certain lenders and JPMorgan Chase Bank, N.A. acting as administrative agent and collateral agent. As of September 30, 2026, the 2025 Revolving Credit Facility had a revolving commitment of $550.0 million (including a $200.0 million letter of credit sub-facility). Proceeds under the 2025 Revolving Credit Facility are primarily used to support prefunding of customer flows within the Company’s global money movement product and also for general corporate purposes. As part of the 2025 Revolving Credit Facility, the Company capitalized $3.1 million of new debt issuance costs within ‘Other noncurrent assets, net’ on the Condensed Consolidated Balance Sheets, which are amortized to interest expense over the term of the 2025 Revolving Credit Facility.

The 2025 Revolving Credit Facility has a maturity date of June 24, 2030, and permits borrowings in the form of (a) alternate base rate loans, (b) term benchmark loans, and (c) swingline loans. Borrowings under the 2025 Revolving Credit Facility accrue interest at a floating rate per annum equal to, at the Company’s option, (1) the Alternate Base Rate (defined in the 2025 Revolving Credit Facility as the rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the New York Federal Reserve Bank Rate in effect on such day plus 0.50%, and (c) the Term SOFR Rate for an interest period of one month plus 1.00% (subject to a floor of 1.00%) plus 0.50% per annum) or (2) the Term SOFR Rate (subject to a floor of 0.00%) plus 1.50% per annum. Such interest is payable (a) with respect to loans bearing interest based on the Alternate Base Rate, the last day of each March, June, September, and December, (b) with respect to any term benchmark loan, at the end of each applicable interest period, but in no event less frequently than three months, and (c) with respect to any swingline loan, the day the loan is required to be repaid. In addition, an unused commitment fee, which accrues at a rate per annum equal to 0.25% of the unused portion of the revolving commitments, is payable on the fifteenth business day of each January, April, July, and October. Unused commitment fees were not material during the three and nine months ended September 30, 2026.

The 2025 Revolving Credit Facility contains customary conditions to borrowing, events of default, and covenants, including covenants that restrict the ability to dispose of certain assets, merge with other entities, incur certain indebtedness, grant liens, pay dividends or make other distributions to holders of the Company’s capital stock, make investments, enter into restrictive agreements, or engage in certain transactions with affiliates. Financial covenants in the 2025 Revolving Credit Facility include a requirement to maintain a net leverage ratio of no greater than 4.50:1.00, which is tested quarterly. The Company was in compliance with all financial covenants under the 2025 Revolving Credit Facility as of September 30, 2026 and December 31, 2025.

The obligations under the 2025 Revolving Credit Facility are guaranteed by the material domestic subsidiaries of Remitly Global, Inc., subject to customary exceptions, and are secured by substantially all of the assets of the borrowers and guarantors thereunder, subject to customary exceptions. Amounts of borrowings under the 2025 Revolving Credit Facility may fluctuate depending on transaction volumes and seasonality.

As of September 30, 2026, the Company hadno outstanding borrowings under the 2025 Revolving Credit Facility. As of September 30, 2026, the Company had unused borrowing capacity of$468.5 million under the 2025 Revolving Credit Facility and $81.5 million in issued, but undrawn, standby letters of credit.

As of December 31, 2025, the Company had $155.0 million outstanding borrowings under the 2025 Revolving Credit Facility with a weighted average interest rate of 7.25%. As of December 31, 2025, the Company had unused borrowing capacity of $323.2 million under the 2025 Revolving Credit Facility and $71.8 million in issued, but undrawn, standby letters of credit.

On October 26, 2026, the Co-Borrowers entered into Amendment No. 2 to the 2025 Revolving Credit Facility, which amended the 2025 Revolving Credit Facility to increase the aggregate amount of the revolving commitment from $550.0 million to $1.0 billion (including an increase to the letter of credit sub-facility from $200.0 million to $400.0 million).

10. Net Income Per Common Share

The following table presents the calculation of basic and diluted net income per share attributable to common stockholders for the periods indicated. Basic net income per share is calculated using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is calculated using the weighted-average number of shares of common stock outstanding including the dilutive effect of all potential shares of common stock as determined under the treasury stock method. Dilutive common shares primarily include outstanding stock options and unvested restricted stock units (“RSUs”). Certain common stock equivalents, primarily RSUs, were excluded from diluted net income per share because their effect would have been anti-dilutive.

(1)As of September 30, 2026, performance stock units (“PSUs”) to be settled in 1.2 million shares of common stock were excluded as they are subject to market conditions that were not achieved as of such date.

11. Common Stock

As of September 30, 2026, the Company has authorized 725.0 million shares of common stock with a par value of $0.0001 per share. Each holder of a share of common stock is entitled toone vote for each share held at all meetings of stockholders and is entitled to receive dividends whenever funds are legally available and when declared by the Company’s board of directors. No dividends have been declared or paid by the Company during the nine months ended September 30, 2026 and 2025.

Pledge 1% Stock Donation

In July 2021, the Company’s board of directors approved the reservation of up to 1.8 million shares of common stock that the Company may issue to or for the benefit of a 501(c)(3) nonprofit foundation or a similar charitable organization pursuant to the Company’s Pledge 1% commitment, in installments overten years.

During both of the three and nine months ended September 30, 2026 and 2025, the Company donated 45,490 and 136,470 shares, respectively, of its common stock to the Remitly Foundation, a donor advised fund at Rockefeller Philanthropy Advisors.

For the three months ended September 30, 2026 and 2025, the Company recorded a chargeof$1.2 million and $0.9 million, respectively. For the nine months ended September 30, 2026 and 2025, the Company recorded a charge of $2.9 million and $2.7 million, respectively. These charges are recorded to ‘General and administrative expenses’ on the Condensed Consolidated Statements of Operations.

Share Repurchase

In July 2025, the Company’s board of directors approved a share repurchase program that provides for the repurchase of up to an aggregate of $200.0 million of the Company’s outstanding common stock. On October 28, 2026, the Company’s board of directors approved an increase in the aggregate authorization of the program by $300.0 million, from $200.0 million to $500.0 million. The share repurchase program does not expire and may be suspended, discontinued, or modified at any time without notice, at the Company’s discretion. Any share repurchases under the Company’s share repurchase program may be made through open market transactions, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions.

During the nine months ended September 30, 2026 and 2025, in accordance with its share repurchase program, the Company repurchased and retired an aggregate of 4.5 million shares of its common stock for $80.0 million, and 0.6 million shares of its common stock for $11.9 million, respectively, which was recorded to‘Additional paid-in capital’ on the Condensed Consolidated Balance Sheets. As of September 30, 2026 and 2025, a total of $96.1 million and $188.1 million, respectively, remained available for future repurchases of the Company’s common stock under the share repurchase program.

12. Stock-Based Compensation

Shares Available for Issuance

As of September 30, 2026,23.2 million and 9.3 million shares remained available for issuance under the 2021 Equity Incentive Plan and the Employee Stock Purchase Plan (“ESPP”), respectively.

Stock Options

The following is a summary of the Company’s stock option activity during the nine months ended September 30, 2026:

(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock.

No stock options were granted during the nine months ended September 30, 2026 or 2025.

The following is a summary of the Company’s stock option activity during the nine months ended September 30, 2026 and 2025:

Restricted Stock Units and Performance Stock Units

The Company has both time-vested RSUs and PSUs with market- and time-based vesting conditions. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for further discussion regarding the Company’s RSUs. During the nine months ended September 30, 2026, the Company granted PSUs with market- and service-based vesting conditions, the fair value of which was determined using a Monte Carlo simulation model. The related assumptions used in the valuation model include expected term, volatility, dividend yield, and risk-free interest rate. Stock-based compensation expense related to the PSUs was not material for the three and nine months ended September 30, 2026. No PSUs were granted or outstanding during the three and nine months ended September 30, 2025.

RSU and PSU activity during the nine months ended September 30, 2026 was as follows:

The following is a summary of the Company’s RSU and PSU activity during the nine months ended September 30, 2026 and 2025:

Employee Stock Purchase Plan

A new 12-month ESPP offering period commences on March 1 and September 1 of each fiscal year, and the plan includes a rollover feature for the purchase price if the Company's stock price at the end of the purchase period is less than the Company's stock price on the first day of the offering period. If this rollover feature is triggered, a new offering period begins. The rollover feature had an immaterial impact for all periods presented and any incremental stock-based compensation expense is recognized over each new offering period.

The fair value of the ESPP offerings, including those described above, were estimated using the Black-Scholes option-pricing model as of the respective offering dates, using the assumptions below. These assumptions represent the grant-date fair value inputs for new offerings which commenced during the nine months ended September 30, 2026 and 2025, as well as updated valuation information as of the modification date for any offerings for which a modification occurred during the periods presented herein:

Stock-Based Compensation Expense, Net

Stock-based compensation expense, net for stock options, RSUs, PSUs, and the ESPP, included within the Condensed Consolidated Statements of Operations, net of amounts capitalized to internal-use software as described in Note 6. Property and Equipment, was as follows:

As of September 30, 2026, the total unamortized compensation cost related to all non-vested equity awards, including RSUs and PSUs, was $277.6 million, which will be amortized over a weighted-average remaining requisite service period of approximately 2.3 years. As of September 30, 2026, the total unrecognized compensation expense related to the ESPP was $2.8 million, which is expected to be amortized over the next 0.9 years.

13. Restructuring Initiatives

In the three months ended March 31, 2026, the Company began implementing restructuring plans to simplify and scale certain processes, functions, and team capabilities.

Restructuring costs incurred include severance and related termination benefits, and lease exit costs primarily associated with changes to the Company’s leased facilities in Israel and Ireland, including impairments of property and equipment, as the Company evaluates updates to its operations in those locations. These specific restructuring initiatives are expected to be completed by December 31, 2026.

The Company incurred charges of $2.1 million and $17.9 million for the three and nine months ended September 30, 2026, respectively, related to these initiatives. There wereno restructuring costs during the three and nine months ended September 30, 2025 related to these initiatives.

The following table presents the restructuring costs included within the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2026:

The following table presents the changes in liabilities by major type of cost, including expenses incurred and cash payments resulting from the restructuring costs and related accruals, during the nine months ended September 30, 2026:

(1) Accrued restructuring liability associated with these costs is included within ‘Accrued expenses and other current liabilities’ on the Condensed Consolidated Balance Sheets.

(2)Noncash charges includes noncash write-offs of right-of-use assets and property and equipment.

14. Income Taxes

The Company computes its (benefit from) provision for income taxes for interim periods by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusting for discrete items arising in that quarter.

The Company’s effective tax rates on pre-tax income were 3.2% and 28.9% for the three months ended September 30, 2026 and 2025, respectively, and (73.0)% and 24.7% for thenine months ended September 30, 2026 and 2025, respectively. The difference between the effective tax rate and the U.S. federal statutory rate of 21.0% for the three and nine months ended September 30, 2026 was primarily the result of the release of the Company’s valuation allowance against its U.S. deferred tax assets. For the three and nine months ended September 30, 2025, the difference was primarily the result of foreign income taxed at different rates, changes in the U.S. valuation allowance, non-deductible stock-based compensation, and recognition of a discrete income tax benefit, primarily driven by excess stock-based compensation deductions.

Due to cumulative losses in the U.S. during prior periods, the Company had maintained a full valuation allowance against its U.S. deferred tax assets, including net operating loss carryforwards, capitalized research costs, and tax credits related primarily to research and development. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative.

During the three months ended June 30, 2026, the Company reached a cumulative income position in the United States over the previous three years, which constituted objective and verifiable positive evidence and thus received significant weighting in the Company’s assessment. Additional positive evidence considered by the Company included recent utilization of U.S. tax attribute carryforwards and future forecasts of continued profitability in the U.S.

In completing its assessment, the Company also weighed significant negative evidence, including the limited tenure of recently achieved U.S. profitability, the inherent risk in projecting taxable income over the carryforward periods of existing tax attributes, and variable macroeconomic conditions that may impact the Company’s ability to generate forecasted taxable income. The Company also considered that future tax deductions associated with stock-based compensation depend on the Company’s stock price, which is inherently unpredictable and introduces additional uncertainty into its forecasts of future U.S. taxable income.

Upon considering the weighted impact of all evidence, both positive and negative, the Company concluded that the positive evidence, including the objective three-year cumulative income position, outweighed the negative evidence and that it was more likely than not that its U.S. federal and state deferred tax assets would be realizable. As a result, the Company released its full U.S. valuation allowance and recognized a corresponding $140.6 million discrete tax benefit during the three months ended June 30, 2026. The effect of the valuation allowance release is included as a component of the ‘(Benefit from) provision for income taxes’ within the Condensed Consolidated Statements of Operations.

When a change in valuation allowance is recognized during an interim period, the change in valuation allowance resulting from current year income is included in the annual effective tax rate and the release of valuation allowance supported by projections of future taxable income is recorded as a discrete provision for (benefit from) income taxes in the interim period. During the three months ended September 30, 2026, the Company further adjusted its valuation allowance release as a result of a change in forecasted income. The Company recognized the related discrete tax expense of $4.1 million during the three months ended September 30, 2026, and discrete tax benefit of $136.5 million during the nine months ended September 30, 2026. As of September 30, 2026, the Company had deferred tax assets of $149.3 million, which are included within the line item‘Other noncurrent assets, net’ on the Condensed Consolidated Balance Sheets.

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and internationally. As of September 30, 2026, tax years 2012 through 2021, and 2023 through 2025 remain open for examination by taxing authorities. The Company’s 2022 federal tax return was audited by the Internal Revenue Service, with no adjustments.

15. Commitments and Contingencies

Guarantees and Indemnification

In the ordinary course of business to facilitate sales of its services, the Company has entered into agreements with, among others, suppliers and partners that include guarantees or indemnity provisions. The Company also enters into indemnification agreements with its officers and directors, and the Company’s amended and restated certificate of incorporation and amended and restated bylaws include similar indemnification obligations to its officers and directors. To date, there have beenno claims under any indemnification provisions; therefore, no such amounts have been accrued as of September 30, 2026 and December 31, 2025.

Litigation and Loss Contingencies

Litigation

From time to time, the Company may be a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, threatened claims, breach of contract claims, and other matters. The Company operates in a complex legal and regulatory environment and its operations are subject to various U.S. and foreign laws, rules, and regulations. From time to time, the Company is also subject to inquiry, examinations, or enforcement actions from its various regulators. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. As of September 30, 2026, the Company was involved in certain intellectual property and trademark disputes in certain jurisdictions; the potential losses related to those disputes cannot currently be reasonably estimated and any impact is expected to be immaterial.

Although the results of litigation and claims are inherently unpredictable, the Company does not believe that there was a reasonable possibility that it had incurred a material loss with respect to such loss contingencies as of September 30, 2026 and December 31, 2025.

Regulatory Proceedings

Remitly Australia, Pty Ltd (“Remitly AUS”), a subsidiary of the Company, is engaging with the Australian Transaction Reports and Analysis Centre (“AUSTRAC”) regarding Remitly AUS’s compliance with Australian anti-money laundering laws and counter-terrorism financing laws. As part of AUSTRAC’s investigation, Remitly AUS has received and responded to notices and requests for information. The matter is ongoing, and the Company is unable to predict the outcome, or reasonably estimate the possible loss or range of loss, if any, which could be associated with resolution of the matter.

Purchase Commitments

The disclosure of purchase commitments in these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes within the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The Company routinely enters into marketing and advertising contracts, software subscriptions or other service arrangements, including cloud infrastructure arrangements, and compliance-application related arrangements that contractually obligate us to purchase services, including minimum service quantities, unless given notice of cancellation based on the applicable terms of the agreements.

Reserve for Transaction Losses

The table below summarizes the Company’s reserve for transaction losses for the three and nine months ended September 30, 2026 and 2025:

16. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of September 30, 2026 and December 31, 2025:

(1)The trade settlement liability amount represents the total of disbursement postfunding liabilities and book overdrafts owed to the Company’s disbursement partners. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for further discussion.

17. Supplemental Cash Flow Information

The supplemental disclosures of cash flow information consisted of the following:

18. Segment Reporting

Segment and Geographic Information

The Company determines operating segments based on how its chief operating decision maker (“CODM”) manages the business, makes operating decisions around the allocation of resources, and evaluates operating performance. The Company’s CODM is its Chief Executive Officer, who reviews the Company’s operating results on a consolidated basis. The Company operates asone operating segment. Based on the information provided to the Company’s CODM, the Company believes that the nature, amount, timing, and uncertainty of its revenue and how it is affected by economic factors are most appropriately depicted through the Company’s primary geographical locations. Revenues recorded by the Company are substantially all from the Company’s single performance obligation which are earned from similar services for which the nature of associated fees and the related revenue recognition models are substantially the same. Refer to Note 3. Revenue and Note 6. Property and Equipment for information related to the Company’s geographic information for revenue and long-lived assets, respectively.

Segment Income and Performance Measurement

The Company’s CODM is provided the financial performance of the Company'sone operating segment showing net income (loss) as the primary measure of segment profitability. Net income (loss) reflects revenue generated and expenses incurred for the business. The CODM uses this measure to evaluate the operational efficiency and profitability of the Company, to make strategic decisions about capital allocation, and to assess whether the Company is meeting its financial targets. The CODM does not evaluate the performance of itsone operating segment using asset information.

The Company’s CODM is regularly provided results comparing actual performance against budgeted targets and prior periods. This measure aligns with how resources are managed and allocated within the Company’sone operating segment business.

Significant Segment Expenses

On a regular basis, the Company’s CODM is provided certain significant segment expenses, which include advertising expense and stock-based compensation expense, in addition to those significant segment expenses reported within the Condensed Consolidated Statements of Operations.

The following table reconciles the significant segment expenses regularly provided to the Company’s CODM for the three and nine months ended September 30, 2026 and 2025, to the primary measure of segment profitability, net income:

(1) The significant segment expenses reported within the Condensed Consolidated Statements of Operations are presented in this table excluding stock-based compensation expense, net. Stock-based compensation expense, net is presented separately as an additional significant segment expense and is regularly provided to the CODM. Refer to Note 12. Stock-Based Compensationand Note 6. Property and Equipment.

(2) The significant segment expense reported within the Condensed Consolidated Statements of Operations is presented in this table excluding advertising expense. Advertising expense is presented separately as an additional significant segment expense and is regularly provided to the CODM. Advertising expense is included in ‘Marketing expense’ as described in Note 2. Basis of Presentation and Summary of Significant Accounting Policies.

(3) Other segment income (expense), net includes ‘Other income (expense), net’, which is described in Note 2. Basis of Presentation and Summary of Significant Accounting Policiesin the notes to the consolidated financial statements included in Part II, Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

There were no unusual items or other significant noncash items for the three and nine months ended September 30, 2026 and 2025.